9. Debt

Debt consisted of the following (in thousands):


	June 29, 2012		December 31, 2011
Senior Credit Facility—term loan	$	10,000	$	10,000

Total current portion of long-term debt	$	10,000	$	10,000


Senior Credit Facility—term loan	$	25,000	$	30,000
Senior Credit Facility—revolving credit facility		18,000		28,000

Total long-term debt	$	43,000	$	58,000

Senior Credit Facility

The Company’s senior secured credit agreement (the “Credit Agreement”) provides for a $40.0 million, 4-year, term loan facility due in quarterly installments of $2.5 million beginning in January 2012 and a $40.0 million, 4-year, revolving credit facility (collectively, the “Senior Credit Facility”) that matures in 2015. The Credit Agreement also provides for an additional uncommitted $25.0 million incremental facility, subject to the satisfaction of certain customary covenants. The Company is required to pay a commitment fee on unused commitments ranging between 0.3% and 0.5% annually, based on the Company’s leverage ratio, as defined in the Credit Agreement.

The Credit Agreement contains various customary representations, warranties and covenants applicable to the Company and its subsidiaries, including, without limitation, (i) covenants regarding maximum leverage ratio and minimum fixed charge coverage ratio; (ii) limitations on dividend payments and stock repurchases; (iii) limitations on fundamental changes involving the Company or its subsidiaries; (iv) limitations on the disposition of assets and; (v) limitations on indebtedness, investments, restricted payments and liens. The Company is in compliance with these covenants as of June 29, 2012. On July 19, 2012, the Company entered into an amendment to the Credit Agreement (the “Second Amendment”). The Second Amendment provides that the Company has satisfied the Burnoff Condition (as defined in the Credit Agreement) contained in the Credit Agreement effective as of July 19, 2012, which eliminates the requirement for the Company to meet the borrowing base financial restriction and minimum EBIDTA covenant contained in the Credit Agreement.

Interest Expense

The interest rates on the term loan and revolving credit facility were 2.97% and 2.85%, respectively, at June 29, 2012. Interest expense on the Senior Credit Facility for the three and six months ended June 29, 2012 was $0.4 million and $1.0 million, respectively. In addition, the Company recorded $0.3 million and $0.5 million of non-cash amortization of deferred financing costs for the three and six months ended June 29, 2012, respectively.

Interest expense of $3.4 million and $7.1 million for the three and six months ended July 1, 2011, respectively, was related to the 12.25% Senior Secured PIK Election Notes which were extinguished in October 2011.

Fair Value of Debt

As of June 29, 2012 and December 31, 2011, the outstanding balance of the Company’s Senior Credit Facility of $53.0 million and $68.0 million, respectively, approximated fair value based on current rates available to the Company for debt of the same maturity, and is therefore classified as Level 2 within the fair value hierarchy.